Our Team

STA's Team of Lawyers in Abu Dhabi, Bahrain, Doha, UAE, Luxembourg, Moscow, RAK, Sharjah, and Singapore. Find a Lawyer. ..

Read more information

UAE Federal Law to boost FDI

UAE Federal Law to boost FDI

The UAE President His Highness Shaikh Khalifa Bin Zayed Al Nahyan has issued Decree No. (19) of 2018 on Foreign Direct Investment (FDI) which aims to improve the country's investment environment and attract direct investment in line with national development policies.

The New FDI Law:

Per Article II, the decree enhances UAE's position as a major destination for FDI at the local and international levels. It also seeks to expand and diversify the production base, transfer and attract advanced technology, knowledge and training. The significant change introduced by the new FDI Law is to increase the flow to 100% foreign direct investment in priority sectors to achieve balanced and sustainable development, providing job opportunities in various fields, making the best returns of available resources and high added value to the country's economy.

Foreign Direct Investment Unit:

Foreign Direct Investment Unit will be established in the Ministry of Economy, which is responsible for :

  1. Proposing foreign direct investment policies and setting up associated plans and programmes on their implementation following their approval by the UAE Cabinet.
  2. Establishing a comprehensive database for UAE investments, including data on existing FDI projects, and will review and update information on a periodical basis. (Article 5)
  3. Facilitate registration and licensing foreign direct investment projects, as well as monitor and evaluate their performance in the country.

Licensing of Foreign Investment Companies:

As per Article 10, the Licensing Authority and other relevant authority will set up and establish requirements, conditions, and procedures for the establishment and licensing of FDI Projects. A Licensed Foreign Investment company shall be treated as a national company and shall have the privileges and limits as provided by the legislation of UAE. The new FDI law shall not affect the existing FDI projects or existing foreign investors and shall continue to enjoy the benefits and privileges as per erstwhile legislation, agreements and contracts.